THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

FREDRICKA WHITFIELD, CNN ANCHOR, IN THE MONEY: Hello again. I'm Fredricka Whitfield. "Now in the News." The mother of a missing Alabama student is in Aruba to help in the search for her child. No one has seen Natalee Holloway since early Monday morning when she left a club with three men. Holloway was on the Caribbean Island to celebrate her graduation. Police, volunteers and FBI agents have been looking for her now for many days. A military report shows some U.S. personnel mishandled copies of the Koran at the Guantanamo Bay detention center. The White House calls the episodes isolated. The report also concludes that Muslim inmates at Gitmo were responsible for attempts to flush the holy book down a toilet.

Hundreds of people turned out for the funeral procession for a Lebanese journalist in Beirut. Anti-Syrian journalist Samir Kassir was killed Thursday when a bomb exploded in his car. Lebanon's Pro-Syrian president has condemned the killing, but the opposition in Lebanon blames Syria and its local allies for the blast.

It was a quiet Saturday in Beijing's Tiananmen Square today. Dissidents had been warned against trying to mark the 16th anniversary of the deadly crackdown on protests in the square. A vigil was held in Hong Kong, the only observation of the violence on Chinese soil.

I'm Fredricka Whitfield at the CNN Center in Atlanta. More news at the bottom of the hour. IN THE MONEY begins right now.

ANNOUNCER: From New York City America's financial capital this is IN THE MONEY.

JACK CAFFERTY, CNN ANCHOR, IN THE MONEY: Welcome to the program. I'm Jack Cafferty. Coming up on today's edition of IN THE MONEY, Saddam on the docket. The new Iraqi government says it will put the former dictator on trial within two months. We will look at how the case could affect Iraq and for that matter the entire Arab world.

Plus, hedge fund traders are more active than ever. They have an impact on everything from the price of gasoline to artwork. We'll find out if you have anything to fear from Wall Street's latest masters of the universe.

And when does it ever end? More and more 20-somethingings are graduating from college and moving back home and staying there, indefinitely. We'll examine this trend. Find out why it's growing.

I'm not sure how much the world at large cares, but the news media was fixated on the revelation of Deep Throat this week. And the person was alternately praised and vilified -- praised as a patriot who saw the wrongdoing at the highest levels of government and did his civic duty; vilified as being a bitter government employee who used his bitterness over not being promoted to the top job at the FBI to get out the long knives for the commander in chief.

ANDY SERWER, CNN ANCHOR, IN THE MONEY: Well, you know I remember I grew up then in the Maryland in the Washington, D.C. area. I watched this take place in high school. People forget that journalism was a backwater at that time. No one wanted to get in that business and this made it very romantic. I mean Deep Throat was a movie character in "All the President's Men." so it's a profound part of history. But it really is true that when you think about it, where do you come out on this guy?

SUSAN LISOVICZ, CNN ANCHOR, IN THE MONEY: I -- well, I think if you're a journalist, we understand that the importance of sources. But I think one of the other interesting -- one of the many, interesting things about it is how we feel about it. We all lived through it, right? We can remember the president of the United States resigning. I was at the New York Stock Exchange when it first crossed, that Deep Throat was unveiled. And I was working with someone who was 26 years old. For him, it's an historical footnote. For us, people of a certain age, it was really something that brings forth I think an emotional response. Those were really tumultuous times.

CAFFERTY: The other little interesting footnote, perhaps not so interesting, is Woodward, Bernstein and Bradlee romanticized this guy. If they had simply said based on a high-ranking source of the United States Justice Department, nobody would have thought anything about it and 30 years later would have been long forgotten.

SERWER: It was the highlight of the movie. The garage, sort of this --

LISOVICZ: Hal Holbrooke.

SERWER: This mythical figure. They romanticized.

LISOVICZ: But people could keep a secret in Washington and people could keep their word. That's something that's note worthy.

CAFFERTY: That was a different era. All right, the Iraqi government now says it plans to put Saddam Hussein on trial within the next two months. Even if they manage to pull it off, and it is a tall order at that, there's still a lot of questions about how the trial will be conducted and where and how the Iraqi's and other Arabs will react to it if it happens, and whether anyone outside the courtroom will be able to see it, as in cameras in the court.

Joining us now with some thoughts about all of these things is a man who has a stake in the outcome of the case: former U.S. Ambassador to Saudi Arabia Richard Murphy, who knows well all of the issues that provide the background for this. Mr. Ambassador, welcome to IN THE MONEY. It's nice to have you here.

RICHARD MURPHY, FORMER U.S. AMBASSADOR TO SAUDI ARABIA: Thank you.

CAFFERTY: With all that is going on in Iraq right now -- the violence, the insurgency, the lack of constitution, the struggling new government -- why is the trial suddenly a front-burner item over there, do you think?

MURPHY: I think in the short term, if they stage this, beginning in the next two months it will be a display of control over not just their court system, but over public opinion, by the new Iraqi government. It would be a prestigious thing for them to be putting the former president on trial under their control.

LISOVICZ: OK, prestigious aside though, you think about the demands of this trial, which would require enormous security, a lot of resources that Iraq doesn't have. Iraq's resources are being blown up every day. I'm talking about the men who are their police officers and trying to put some sort of security in this fledgling democracy. So is the timing really appropriate?

MURPHY: Well, you're right. It's going to be an enormous diversion of resources to manage this trial. Recall, though, there's been at least a year of prep done, hand-in-hand with the Americans and the international coalition, to get the judges and trial lawyers in position and briefed on how such trials should proceed. So there's been a lot of preparation.

And it is a diversion of resources in a sense, in that the insurgency is still going at a fierce level, and the government has not proven itself yet that it can manage the overall affairs. But I think that's why they want to do it, to show they are in control.

SERWER: I don't know about you, Mr. Ambassador, but I see this as being potentially very problematic. We saw Saddam; I guess it was some sort of pretrial hearing. He held his own. Is he going to be talking? You think about the outcome. If he's executed, he's a martyr. If he's imprisoned, he's still around. Aren't there so many problems with this, going forward?

MURPHY: All of the above. But letting him stay in limbo just as a prisoner with the case unstated against him is even worse.

CAFFERTY: How are they, in your mind, going to hold a trial like this? Will there be cameras, for example, in the courtroom? Will it be held in Iraq? Will they move it out of the country? How do you see the logistics of some of those kinds of issues?

MURPHY: Unquestionably it will be held in Iraq. And the stress will be on, this is an Iraqi trial according to Iraqi procedures. Perhaps the Americans have done a lot of preparation, but they're not going to be visible. And I think that they're going to have to -- the Iraqis, that is, are going to have to strike a balance between something you might call a star chamber proceedings where it's totally in secret, and an open trial with cameras there for every session, as has been the case in the coverage of the Milosevic trial in The Hague. Nobody wants to see this going on for two years with the defendant spouting off and justifying his every action and blaming everybody else for what went wrong in Iraq.

LISOVICZ: How real are the risks of this totally backfiring? In other words, if it's going to be as transparent as possible, Saddam Hussein is going to speak. And people who usually assume, wield a great deal of power, are often articulate, are very charismatic, and he could possibly muster up Sunnis and other insurgents who are still loyal to him.

MURPHY: I don't think any but the ultra loyalists want to see him back in power. The memories are still very bitter. We tend to forget that as we follow the day-to-day coverage on the miserable experiences, that the present government is having maintaining law and order.

There is nostalgia in the sense that he did represent stability of a sort, he represented security of a sort that the new government has yet to demonstrate. There's a wider circle than just the ultra loyalists that will be moved and attracted by his appearance at the trial. He's holding his own. He will hold his own in many ways. He is an articulate, charismatic figure.

SERWER: What about the point that Saddam made again in that hearing where he pointed at the prosecutors and said, "Who are you? By what rule of law do you judge me?" Because the rule of law in Iraq has not been fully established, doesn't he have a point in a way?

MURPHY: Well, he will surely make that point again, that "I am above the law." And this will be a short-term gain for the government and long term as well, if they can establish that no one is above the rule of law and he who had corrupted and perverted the Iraqi legal system in his years in power is now not in power and the system is breathing and living, once again.

CAFFERTY: I got 20 seconds. How's this thing going to play in the rest of the Arab world if it happens?

MURPHY: I think it will play as a reminder that no leader is above the law. And if it works successfully it won't be smooth. But if it goes through to judgment and the government has stated its case clearly and powerfully, I think it will have a profound effect on Arab world opinion, and a positive effect.

CAFFERTY: Richard Murphy, former U.S. assistant secretary of State, former U.S. ambassador to Saudi Arabia, thank you for your time and your comments on IN THE MONEY.

MURPHY: Thank you.

CAFFERTY: Nice to have you here.

When we come back, who are these guys? Wall Street's best dealmakers are leaving the brokerage firms for the greener pasture of the hedge fund industry. Find out what it means for you. And graduating to the pullout couch. Thousands of 20-somethings go from college graduation to a seemingly directionless lifestyle at their parent's home. Find out why so many of them are right back at mom and dad's place.

And we'll take a stab at why so many women are at a disadvantage when it comes to striking it rich. Stay with us.

(COMMERCIAL BREAK)

SERWER: Wall Street has a retro '80s look these days with buyouts and takeovers back in vogue. But the deals aren't the work of junk bond kings and CEOs. They're being made by hedge funds and buyout funds who are changing the way Wall Street works. The trend is the subject of a cover story in this weeks "Fortune" magazine written by yours truly. And here to talk more about that is Howard Kapiloff the managing editor of "Hedge Fund Alert" who is a source in that story. Howard, welcome to the program.

HOWARD KAPILOFF, HEDGE FUND ALERT: Thanks.

SERWER: I'm interested to know, is this something ordinary investors really have to fear, this trend of hedge funds trumpeting all over the place, and making big waves?

KAPILOFF: No, I think the hedge fund industry -- hedge funds tend to be the whipping boys of Wall Street these days. You know, they fly under the radar screen, so to speak. They are loosely regulated. The truth of the matter is, hedge funds, although there's been an explosive growth of hedge funds over the last four or five years, they're managing some trillion dollars of investments. They're -- they really -- actually, make up a small portion in terms of assets, of the entire investor community.

LISOVICZ: Yes, but Howard that may well be, but I'm just going to say three words -- Long Term Capital. Remember that? Where, you know, the payout to by -- I guess it was by CSFB, was $1.5 billion, after Russia defaulted. It may be a small pool of people who are wealthy enough to invest, but the ramifications can be widespread. We just saw a few weeks ago, there were these rumors about hedge fund, there might be a hedge fund collapse, and the stock market here was just quaking for about a week, something linked to GM's being downgraded to junk status. And it really had a widespread effect.

KAPILOFF: Well, Long Term Capital was a situation in which you had phenomenal amount of leverage that they were using. They were buying -- they were borrowing I think as much as $30 or $40 for the -- for a single dollar that they were investing. Today, leverage in the aggregate is -- that's a great deal of amount of leverage in the aggregate in the hedge fund world because there are many more hedge funds than there were.

But leverage for each individual manager, you know, I think is at levels of, at the most maybe one or two times their equity capital. So I think those same dangers that happened with Long Term Capital are not quite -- I don't think the extent of that danger really exists. It's true, though, that hedge fund performance has been disappointing. And I think a large reason for that is there are 8,000 hedge funds and there does need to be somewhat of a shakeout. The industry has seen a deluge of money pouring into it. And -- which has attracted a lot of great money managers. But at the same time, it's attracted a lot of mediocre, perhaps not great money managers.

CAFFERTY: Shouldn't there be more regulation of these things? Eight thousand hedge funds. You can bet they're not all going to return 20 percent annually to the people who invest in them. And as Susan alluded to, when there's a rumor of problems with big hedge funds, the vibrations go right through the bond and stock markets. Shouldn't there be some more transparency concerning what they do and perhaps some regulation, some oversight of some kind?

KAPILOFF: Yes. I mean -- well, first off, there are going to be more regulations that will come into effect in February of next year. Hedge fund managers are going to be required to register with the SEC. It remains to be seen exactly what -- what that's going mean and how effective that will be.

I don't really know how -- how exactly you can regulate what hedge funds do from a -- you know, from the government standpoint. There are professional investors who are pressuring hedge funds to open up what they call separate accounts, which is -- which means that the -- the professional investors can monitor a little bit more closely what the hedge fund manager is investing in, whether he's veering from his strategy, whether he's taking on risks he promised he wouldn't.

SERWER: Let me jump in, Howard, ask you about some of those investors in just the few minutes we got, few seconds we got left here. That is, a lot of universities for instance are investing in these hedge funds and some have ties to the hedge funds, people on the university board. Couldn't that be a big scandal at some point?

KAPILOFF: Well, I think it's already been a scandal at Harvard University, where their -- the managers of their endowments were forced out because of the compensation they were making. But at the same time, net of their compensation, these endowments have been -- have made phenomenal amounts of money by investing in hedge fund managers.

SERWER: All right, we're going to have to leave it at that. Howard Kapiloff the managing editor of "Hedge Fund Alert," thank you for coming on the program.

KAPILOFF: Thank you.

SERWER: Coming up after the break, there's still no end in sight for the Google juggernaut. We'll see if it's too late to use the search engine to find investment gold.

Plus, its "Reality Bites" meets "The Never-Ending Story." Why more and more 20-somethings are taking the slow road to a career and spending more time just hanging out with mom and dad. And why women still struggle in the boardroom. Our guest says parents are to blame. Oh, come on. Stay tuned for some tips on raising successful daughters.

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LISOVICZ: Now, let's take a look at the week's top stories in our "Money Minute." The U.S. economy added 78,000 new jobs in May. That was less than half the number Wall Street was expecting. The unemployment rate fell to 5.1 percent. The slower job growth may be a major shot in the arm for those who say the Fed should stop raising interest rates.

President Bush has nominated Congressman Christopher Cox to replace outgoing SEC Chief William Donaldson. Many corporate leaders saw Donaldson's period at the helm as too restrictive and Cox could change that tone if he's confirmed.

The taxman is knocking on the operating room door. A number of states are considering taxing cosmetic surgery like facelifts, tummy tucks, and Botox injections. New Jersey passed the first cosmetic surgery tax law last summer, and now Texas, Illinois, Washington and New York are all considering similar bills. In most cases, the revenue from the so-called bo-taxes is intended to pay for health care for poor children.

SERWER: Just when you thought the buzz around Google couldn't get any hotter, it did. This week, Credit Suisse First Boston raised its 12-month price target for Google to $350 a share. Since it started trading late last summer, Google has been a juggernaut. People who bought Google at its IPO price of 85 bucks a share have already more than tripled their money. I think that's enough to make Google our "Stock of the Week."

I meant the thing has been on fire. We wrote a story about it in "Fortune" in December, saying is Google overvalued at $165 a share? Now it's getting near $300. This company really continues to amaze businesspeople. It's not just a search engine anymore, you can do photographs, you can do e-mail, you can documents. You can use it on a Treo, a Blackberry. You don't need to use it on a PC. So guess who sees it as a real threat. Microsoft.

CAFFERTY: Sure.

SERWER: It takes a lot to scare Microsoft. But that's how important this company's becoming.

LISOVICZ: But you touched on the proper word. Microsoft and big giants like Time Warner, everybody wants to get a little piece of the action. One of the smaller competitors said, look, everybody likes Coke, but if that's all you had to drink, that's not so good. So there are competitors coming out there. It's fantastic for somebody who got in early. That is a lofty price for a stock.

CAFFERTY: Or is it? I mean, the price target of $350 in the next 12 months, it's outstripped that growth rate since the IPO came out. The question is do you buy the stock now at, what is it, $285, or something?

SERWER: Yes.

CAFFERTY: How much can it continue to grow? It's forward earnings, it's -- you know.

SERWER: Well it has a price earnings multiple of 112. It's hard to justify buying it. I said that at $200 and I was way wrong. You look at this company. It has revenues of about $3 billion, $4 billion, but the same valuation is Time Warner, our parent company, which has revenues of $80 billion.

CAFFERTY: How much is our stock?

SERWER: Our stock is -- well, we know where it is. $7.

LISOVICZ: It's a lot less.

SERWER: It's much more profitable than Time Warner. It also interestingly enough has a lot more cash per share than Time Warner, which is something you think of a more established company having. Obviously, it is growing much faster than this company. Amazing.

CAFFERTY: So all of sudden 112 multiple makes sense if you look at those kinds of numbers, if they can continue to do that. The old problem is the bigger your numbers get, the tougher the increases become.

SERWER: That's right. The other interesting point, I think is that Microsoft is really working on its search engine because it's got to keep up with this baby. They have an office in Redmond, Washington, just down the road from Microsoft, which is making them none too happy over there in Mr. Gates' land.

CAFFERTY: I bet.

SERWER: So next stop, 300 bucks. We'll have to see about that one.

Coming up on IN THE MONEY, out of college and on to the couch. Find out why more and more 20-somethings are rejecting traditional jobs and delaying adulthood.

Also ahead, is green your color? We will look at the difference between men and women when it comes to money matters.

And summer weddings season is here. Stay tuned for a wedding-day blooper on our "Fund Site of the Week."

(COMMERCIAL BREAK)

WHITFIELD: Hello. I'm Fredricka Whitfield at the CNN Center in Atlanta. Now in the news, Pope John Paul II's close friend and secretary says he did not destroy the former pontiff's personal papers as instructed by his will. The archbishop told Polish Radio the documents are filed with -- or filled, rather, with riches and should be preserved.

A military report shows several U.S. personnel mishandled copies of the Koran at the Guantanamo Bay Detention Center. The White House calls those episodes isolated. The report also found that Muslim inmates at Gitmo were responsible for attempts to flush the holy book down a toilet.

Two Iraqi police officers were wounded by a suicide car bombing in Baghdad. Mean while Iraqi and U.S. soldiers are keeping up the pressure on the suspected insurgent south of the capital, which the military believes is a staging area for daily attacks.

The aunt of missing teen Natalee Holloway says authorities in Aruba are questioning three people of interest in the girl's disappearance. Marsha Twitty spoke with reporters about an hour ago. Holloway was last seen leaving an Aruba nightclub Monday morning. The family now has posted a $50,000 reward for any information leading to her whereabouts.

And hundreds of mourners turned out in Beirut today for the funeral of an anti-Syrian journalist Samir Kassir. Kassir was killed by a car bomb earlier this week. FBI agents are assisting in the investigation. Lebanon's opposition blames Syria and its agents for the killing. It is calling for major demonstrations on Monday.

And I'll have the latest news at the top of the hour. Now back to more of IN THE MONEY.

CAFFERTY: If you're one of the thousands or perhaps millions of American parents with an 18-year-old to 25-year-old child who is still without a real career -- or, for that matter, a permanent address besides yours -- you're not alone. In fact, according to one estimate, 20 percent of the 26-year-olds in this country live with their parents. Don't push the panic button or ask for a refund on the college tuition just yet though.

Joining us now with his take on this extended adolescence, a growing phenomenon in this country is Jeffrey Arnett, a psychologist at the University of Maryland, author of "Emerging Adulthood, the Winding Road from Late Teens through 20s." Mr. Arnett, welcome. That's a road that seems to be getting longer. What's behind this, and why do you suggest that maybe it's not such a bad thing?

JEFFREY ARNETT, UNIVERSITY OF MARYLAND: Well, people get married later than they used to. They have their first child later than they used to. They stay in education longer. And I think there's been a change in how people view adulthood. They're not as eager to get there as they used to be. They realize adulthood comes with a lot of responsibilities. They're not that eager to take on. They want to have fun while they're young basically. They want to enjoy their youth. They want to enjoy the freedom of being unfettered during their early to mid-20s.

LISOVICZ: You know, Jeffrey, the changes are really profound, from generation to generation. My dad grew up during the Depression. He served in the war, navigating bombing missions in the South Pacific. Went to college on the GI Bill. Immediately bought a house, which he still lives in. I mean people grew up right away, in that generation. Is it because of that change, the fact we weren't at war? Is it the economy? What is behind this?

ARNETT: I think your dad is a good example of that generational change. I think the generation that grew up amid the upheaval of the Great Depression and World War II, they were eager to enter adulthood. The stability of it was attractive to them. Today's young people have grown up in an affluent and relatively stable time, so the stability of adulthood is not as attractive to them.

They want to have their fun first. They do -- almost all of them want to marry and have kids and settle down eventually. They figure, what's the hurry? They can do that when they're 28 or 30 and they don't see any reason to rush to get there.

SERWER: But Jeffrey, come on. How much of this is financial? You hear about young people getting out of college, they try to move to New York, and an apartment's $3,000 a month. Who can afford to go out in the work place and get a place to live? Isn't that really the issue here?

ARNETT: Well, it's partly the issue, but it's not the only issue. Yes, it's true that sometimes they're financially stretched, especially when they first get out of college. A lot of them have a lot of student loans that have gone to college because college is more expensive than it used to be. But it's more than that. A lot of it is they don't want to get just any job. They want to find a job that's really an expression of their identity, an expression of themselves. That's a lot of -- a lot to ask out of work. It takes longer to find that kind of job than just to find any job.

CAFFERTY: What about the dynamic from within the family? Let's look at this from the parent's point of view, since I'm the parent of four of these delightful little offsprings myself. There's a tendency to say, OK, look, we had you, we raised you, we educated you, we clothed you, we fed you, we housed you, we took care of --

SERWER: Paid for you.

CAFFERTY: You now have a college degree and have reached the age of adulthood. It's time for you to go do all this stuff on your own and let your parents have a little breather here.

ARNETT: Well that is a common lament among parents, because they think when they were that age, when their own parents were that age, and they know that times have changed. They sometimes have expectations that their children will be more self-sufficient than they actually are. So it does sometimes come as an unpleasant surprise to them. But mostly they're surprisingly tolerant of it. As long as their kids have a plan and are working on some way to make their way into adulthood and get out of the house and be financially stable and self-sufficient, the parents are pretty tolerant of it over a short- term period, maybe a year two years at the most.

LISOVICZ: Yes working on the plan. That's what we'll call it working on the plan.

ARNETT: There's got to be a plan.

LISOVICZ: I was working on the plan for a year living with my parents after college -- I hate to disappoint you, Jack and Andy -- and my parents were very tolerant. But on a larger level is this really a good thing? Because from what I understand, this is not just a phenomenon in the United States. It's happening in all industrialized nations, this sort of "Peter Pan" syndrome if you will. People are really delaying responsibilities.

ARNETT: Well, I think it's a good thing in a way. I mean if you figure somebody's likely to find a job they like and can really enjoy and be committed to if they take the time to find that job, to find something they really like, that's a good thing. And the fact is it's not really a "Peter Pan" syndrome because they don't want to remain perpetual adolescents. They don't want to stay in childhood forever. They don't want to rush into it. They want to take their time. Virtually all of them will be out of the house and married and on their way to having a kid and financially self-sufficient by the time they're 30. So it doesn't last forever.

LISOVICZ: It doesn't last forever. That's --

CAFFERTY: It just seems like it.

LISOVICZ: I was waiting for Jack to step in there. Jeffrey Arnett, author of "Emerging Adulthood." It's emerging, Jack.

CAFFERTY: That's right.

LISOVICZ: "The Winding Road from Late Teens to the 20s." Thank you for joining us.

Lots more to come here on IN THE MONEY. In baseball, nice guys finish last and in real life nice girls don't get rich, at least according to our guest. Find out why.

Also a wedding video out take, our "Fund Site of the Week" features a bite-sized blooper. Ah, the wedding cake. Don't go away.

(COMMERCIAL BREAK)

LISOVICZ: If your goal in life is to make piles of money, odds are better you'll get there if you're a man instead of a woman. But our next guest is out to change those odds. Right on. Lois Frankel is the author of "Nice Girls Don't Get Rich: 75 Avoidable Mistakes Women Make with Money." Welcome to the program.

LOIS FRANKEL, AUTHOR: Thank you. LISOVICZ: You know, Lois, I have a problem with the very question. You know, women make up half of the workforce. We're going for advanced degrees more so than men. We're starting our own businesses more rapidly than men. I mean are these mistakes that just women are making?

FRANKEL: Well, I think women make different mistakes than men. And I think we make them because we're not grown up -- we're not raised to think that wealth is going to be important when we're grown up. We're given very different messages than little boys. Little girls hear messages like, oh, it's just as good to do well than to do good. And, you know, what we really want you to do here is think about your college education.

You don't necessarily need to have as good a college education because your income's only going to be the second one. Messages like this -- or it's just as easy to marry a rich man as a poor man -- little boys don't hear those messages. As a result, when girls grow up, they're not focused on wealth.

SERWER: All right Lois, I want to ask you about some of the things that young women should do. First, I want to tell you, that I found -- my wife had this book "How to Hide Money from your Husband." So this trend may be already going too far. But let's get back to some of your tips. What do you suggest that young women should be doing for themselves?

FRANKEL: Some of the things that I tell them is first of all, I don't think you should be hiding money from anyone, but I do think you need to have money in your own name. So whether you're in a relationship where it's a live-in relationship, or whether you're married, you need to make sure you have some money in an account in your own name. Second of all, get into your first house early. Women tend to wait to buy their first home because they have this vision of prince charming carrying them over the threshold. That's a mistake.

You need to get into your first house as early as you can. Next, make sure you join your company's 401(k) plan. A lot of times women will wait because they'll think to themselves, oh, I might not be here that long or it's just not that important or I'm going to get married anyway, and they miss out on that free money you can get from your employer when they match what you put in.

CAFFERTY: But when a young woman gets a job and enrolls in the company's 401(k) plan, we're not talking about the kind of money that will make them rich. The book talks about why women don't get rich. What do they have to do to get Trump money?

FRANKEL: What they have to do, first of all is they have a goal. There's not a woman on the face of the Earth that doesn't know what she wants the scale to say when she steps on it.

CAFFERTY: That's a good point.

FRANKEL: Yes, but women don't know what they want their bank account to say. What your vision is is what you get. First of all, you need to say to yourself, how much money do I need to lead a rich life? And my definition of rich is having all the money you need to live your life the way you want, free from concerns about money. So you need to factor that in. It's not exactly a dollar figure. It's different for everyone. So you need to have a vision, first of all. Second of all, you need to be willing to take a look at your spending and come up with a budget. Now, again, budgets are similar for women as diets are. They think it's got to deprive me. No, I tell women all the time that a budget is designed to show you how much you have left over to spend.

Once you've paid all your bills and you've paid yourself first, which is really your savings, what's left over is yours. These are things that women aren't doing. Most importantly, women don't think rich. They think as if having a lot of money makes them somehow less than a woman. And they've got to get over that idea. I'm not a financial planner. I'm a psychologist. I help women understand how they think about money.

LISOVICZ: A lot of this -- Lois, a lot of stuff you say is pretty obvious. It's Investing 101, saving for your future. Some of the interesting differences where you draw the line between male and female behavior comes with haggling or negotiation, and that is something that's very important when you're talking about your salary, your benefits, and you do see a difference in how professional men and women behave.

FRANKEL: Oh, absolutely. Women aren't willing to negotiate. They see negotiations as confrontations and it makes them uncomfortable. It's one of the reasons why they don't go in and negotiate for the best salary they can possibly get because they're afraid they're going to damage a relationship. A guy goes into the same negotiation and says to himself, I'm entitled to this, this is what the job pays in the market or this is what the next guy's getting. So I'm entitled to it.

Now, the woman thinks, number one I don't want to damage the relationship, and number two if I haven't proved that I earned it yet, that I might not deserve it. So women really need to learn these techniques of negotiation. They are very uncomfortable negotiating.

SERWER: Lois you know that book I was talking about, "How to Hide Money from your Husband." You didn't write that, did you?

FRANKEL: Absolutely not.

SERWER: Just checking. Hasn't the thing started to change already? Aren't women rapidly making these types of moves? I mean, I meet dozens, hundreds of women executives every year who are moving on and making a lot of money, it seems to me.

FRANKEL: You know, they still don't have the same degree of wealth as men do. And one of the reasons is because 80 percent of the discretionary spending in this country is done by women. Men might buy a big-ticket item like a Porsche or big screen TV. But women are whittling their money away daily on things like pillows, candles, things for the home, gifts for their friends. Men don't go out and buy gifts for their friends. They may have dinner together or take them out for a golf game. But women spend their money very differently, and until they take a look at those behaviors -- in fact all the behaviors I talk about in the book -- you know what? They are not going to reach parity with men.

LISOVICZ: OK, so don't spend money on pillows, but do spend money on "Nice Girls Don't Get Rich" and also "How to Hide Money from your Husband" two important books on gaining wealth. Lois Frankel thanks so much for joining us.

FRANKEL: Thank you.

LISOVICZ: Coming up, Money.com's Allen Wastler's goes "Inside Out" on Ford. The carmaker has hit more than a few potholes lately, but the ride should get smoother further up the road.

And put our producers to the test with your email insight. Drop us a line, the address, INTHEMONEY@cnn.com.

But first this week's "Money & Family."

Can't bear to leave your beloved pet home this summer while you're on vacation? You might want to take Bowzer or Fido along for the ride. But before you pack up the car with dog treats and catnip, here's a quick to-do list. Visit the vet before you leave. A quick appointment can help you determine whether your pet is in good enough health to travel. You may also need paperwork proving he or she has been vaccinated if you're traveling outside the U.S. Strap everybody in for the ride. You might want to consider a crate that's large enough for your pet to stand, turn around and lie down.

Remember, some states require pets to be restrained while in a moving vehicle. Call ahead to hotels and motels. Finding pet-friendly lodging can be a challenge. And you may be charged an additional fee on top of the room rates. For more information, check out Takeyourpet.com.

And finally talk with the people you are traveling with or visiting. Some people are highly allergic to pet fur and dander. An allergy attack can ruin everyone's trip. Good luck and happy traveling. I'm Susan Lisovicz for "Money & Family."

(COMMERCIAL BREAK)

CAFFERTY: Ford was out with some weaker sales numbers this week, just as a Christian group announced plans to boycott the automaker. So it was a bad week for Ford, right? Well, not so fast. Allen Wastler and the "Inside Out" segment of our program says what you see here may not be what you get.

ALLEN WASTLER, MONEY.COM: You know, boycotts are funny things. You do it to people to like "we're going to teach you a lesson." But in this case, it might work to Ford's advantage. I got three reasons I'm thinking that. One, publicity. Look, here we are, talking about Ford. They didn't buy commercial time. Ford, Ford, Ford. You get that publicity thing off a boycott, which happens more and more these days if you do it with a high-profile company. One. Two, think about buying cars. That is a major purchase. Do people really make moral decisions based on the car? And if they do, it's more buy American versus --

CAFFERTY: Foreign, sure.

WASTLER: You got GM and Ford. If you look at Ford's number-one selling vehicle, it's the Ford F150, the pick up truck.

LISOVICZ: How American is that?

WASTLER: A lot of people aren't going to give up their pickup trucks, me included. So Ford has a very loyal following. Highly unlikely you'll get them to break out of that. Three, the American Family Association says we did the same thing to Disney. Look what happened to them. Nine years they were boycotting. I think Disney's problems have a little more to do with 9/11, weak stock price, theme park attendance --

CAFFERTY: And the guy they just got rid of who was running the company into the ground all that time. What was his name, Eisner?

WASTLER: Well, he's still there, just -- you know, there's issues there --

SERWER: They really did a good job of stopping him from broadcasting "Desperate Housewives," too.

WASTLER: They have 2 million members, which sounds kind of freaky, but 50,000 people signed the petition. It is more likely Ford will get some publicity, maybe even some sympathy from the elements where they would like to sell cars, like the soccer mom crowd.

CAFFERTY: Enough of this. What about the "Fund Site of the Week"?

WASTLER: Well in honor of one of our producers who is getting married, we have a wedding video for you. Roll it.

LISOVICZ: Not hers.

WASTLER: Looks normal.

CAFFERTY: What did she do? Her fingers in there?

SERWER: Oh, no! Wow. She's some looker there.

WASTLER: Let's hope her wedding goes better.

SERWER: I don't think that's going to happen to Joanne for obvious reasons.

CAFFERTY: OK. Coming up next --

LISOVICZ: Really romantic, Allen. Thank you.

CAFFERTY: Assuming they allow us to continue, coming up next on IN THE MONEY, time to hear from you as we read some of your e-mails from the past week. Send us an e-mail right now if you'd like to comment perhaps on the "Fund Site of the Week" clip we just showed you, we're at INTHEMONEY@cnn.com.

(COMMERCIAL BREAK)

CAFFERTY: It's time now to read your answers to our "Question of the Week" about whether the hot real estate market is pricing you out of your chosen neighborhood -

George in Virginia wrote this, "I'm getting priced out of my current neighborhood, not by the price of homes, but buy my rising property taxes. My property taxes have more than doubled over the past five years. Meanwhile, the government says there's no inflation."

M.J. in New Jersey wrote this, "Absolutely! I was thinking about buying a retirement home in South Florida, but prices are rising out of sight. What good is the rising value of my home in New Jersey if it still isn't enough to cover my next purchase?"

And Joe in Seattle weighed in with, "In Seattle the prices are outrageous, but that isn't really my problem. The trouble is finding a place for sale. Homes here sell within hours of when they're on the market. Maybe I should camp out at the realtor's office."

Now for next weeks email "Question of the Week," which is this, "Do business boycotts the kind Allen was talking, by religious or activist groups influence you in any way?" Send your answers to INTHEMONEY@cnn.com. And you should visit our show page at Money.com/inthemoney, which is where you will find the address of our "Fund Site of the Week". Based on that we certainly hope we're back next week.

Thank you for joining us for this edition of IN THE MONEY. My thanks to CNN correspondent Susan Lisovitz, "Fortune" magazine Editor- at-large Andy Serwer and Money.com Managing Editor Allen Wastler.

Join us next week, Saturday at 1:00 Eastern, Sunday at 3:00. Or you can catch Andy and me all week on "AMERICAN MORNING" which begins at 7:00 Eastern Time. Thanks again and enjoy the rest of your weekend.

END

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